In view of the Banning of Unregulated Deposit Schemes Act, 2019 the Central Register has issued letter to all MSC Societies on the issue of obtaining its prior approval for opening of a new branch or places of business.
The letter, addressed to the Chief Executives of Multi State Cooperative Societies across all States and UTs in the country, asks them to furnish certain documents to this Department for the purpose of opening of a new branch.
It quotes the Banning of Unregulated Deposit Schemes Act, 2019 and says in the Part III of Second Schedule of this Act, Section 67. sub-section (1) of the Multi State Cooperative Societies Act. 2002 has been amended. Now a multi-State cooperative society shall not be entitled to received deposits from persons other than voting members.
It is, therefore, advised those multi State cooperative societies who are interested to open the branches requested to furnish the following documents for the same, reads the Letter.
Documents include
1) Reasons for necessity for opening the new branches of the society,
2) A declaration by the society that there is no complaint against the society regarding non payment of deposits to the depositors/members including other irregularities.
3) A resolution passed in the AGM/special general meeting of general body of the society in this regard.
4) Total number of members of the society state-wise including break-up for regular members and nominal members for the last 3 years.
5) Total branch-wise deposits collected by the society from the regular and nominal members separately for the last 3 years
6) Total number of branches and their addresses along with details of business done by these branches for the last 3 years.
7) Details about investment of deposits collected from the members for the last 3 years.
8) Whether the society is in profit or loss.
9) Audited statements of accounts for the last 3 years.
10) The date of holding election to the Board for the last 2 terms along with the date of holding elections to the present Board. Detailed proceedings of the Returning Officer to be enclosed along with the proposal.
11) Date and documents relating to Annual General Body meeting held for the last 3 years.
12) Copies of the returns filed U/S 120 of the MSCS Act, 2002 for the last 3 years.
13) A certificate from the Registrar of Cooperative Societies (RCS) of the State/UT where the lead office of the society is situated that the society is not accepting deposit from persons other than voting members.